Bahamas - FirstCaribbean International Bank

Management’s Discussion and Analysis ofOperating Results and Financial ConditionNon-interest Income2002 non-interest income increased by $5 million to$39 million from $34 million in 2001.The 2002 figureincludes a figure of $10 million, representing theBarcap incentive fee as described in Note 19, of theFinancial Statements. Excluding this item, noninterestincome declined by $5 million or 13% yearover-yearwith the decline attributable to a decline inbank fees and commissions along with the nonrecurrenceof the $3 million in income earned in2001 as a result of the acquisition of E. F. Services Ltd.Non-interest Expensesfunction of rigorous management ofdiscretionary spending in the lead-up to thecombination.Full-time equivalent employee levels stood at843 as of October 31,2002 compared to 887 atthe same point in the prior year.Provision for Credit LossesLoan loss provisions reduced from $9.6 millionin 2001 to $5.3 million in 2002 due to higherrecoveries in 2002.Total non-interest expenses for 2002 fell by $1.2million or 1.7% over 2001.This decline is largely a32